Do I have to use my Estate Agents In-House Mortgage Advisor?

When you are buying a home, despite what some people believe, you do not need to use the Estate Agent’s in-house Mortgage Advisor if you don’t want to.

What We Hear About In-House Mortgage Advisors

It’s not uncommon to hear that people have been led to believe that they will lose the property if they go with someone else. That is not the case. Some Estate Agents might even state that the seller would prefer you to arrange an in-house mortgage, but this is unlikely to be true either.

Why Do They Push Their In-House Mortgage Advisor?

Estate Agents earn extra commission from you when you use their additional services. This includes using their in-house mortgage advisors. Therefore, you can see that there is an incentive for them to try and persuade you. If you’re not sure if you are being sold to, here are some of the tactics to look out for:

  • A financial incentive for you if you use both their in-house mortgage and conveyancing services.
  • The Estate Agent saying they are not putting your offer forward to the vendor if you have not taken in-house Mortgage Advice. This is an illegal practice!
  • Quoting extortionate solicitor’s fees for a straightforward purchase.

If you don’t want to use the Estate Agent’s in-house mortgage advisor, then there are several other options available to you. In this article, we will try and help you decide who to use for your mortgage and how to make sure you are receiving value for money.

Do It Yourself Online

Some people are confident using price comparison websites to get an idea of the rates available. And this is totally understandable from a cost-saving point-of-view. However, please remember that it’s important to take advice at some point in the process.

Why do we say this? Because buying a house is a very big deal and it’s important you get it right. Mortgage Advisors have lots of experience working within this industry so they will know what to look out for.

If you are doing it yourself online, please be aware that:

  • The rates advertised are ‘Best Buy’ rates – you might not qualify for this rate or meet the lender’s specific lending criteria
  • Some websites only display deals where they have a commercial arrangement with those lenders. Deals from other lenders not visible may be more suitable for you.
  • It can be expensive if you get this wrong. Check what fees are payable and when. If your application is declined can you get your money back?
  • You will solely be responsible for progressing your application. If you apply without taking advice, you will not benefit from any consumer protection such as FOS.

Go To Your Bank

You could arrange a mortgage directly with your bank. This used to be a really popular option, but not so much anymore. This could be as a result of trust in the banks being low.

If you opt to go down this route, what do you need to keep an eye out for?

  • Banks can only offer you their own products.
  • If your application is declined Banks can be reluctant to tell you why.
  • Appointments, especially ones out-of-hours, can be difficult to arrange.

Find your own Mortgage Broker

If you use a Mortgage Broker which is not affiliated with your Estate Agent, then you can seek an Agreement in Principle. This document proves to the Estate Agent that you are in a position to proceed. The agent will then most likely ask that you evidence your deposit too, along with some ID.

A good Mortgage Broker will guide you through the full process of buying a home and give you open and honest advice. Here at NewcastleMoneyMan, we can access 1000s of deals from across the market and aren’t tied to any particular lenders. Therefore, we can get the best deal most suited to you.

If you decide to find your own Mortgage Broker, make sure to take up any offer of a free mortgage consultation. Also, take the time to find an advisor you like and trust as this can have immeasurable benefits in the long run.

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